Ethereum merge news is having an impact on the price of digital assets linked to the blockchain.

ETH-based digital asset funds have seen positive inflows for seven straight weeks as institutional investors pile in, according to the latest CoinShares report. There were $16.3 million inflows last week, bringing total inflows to $159 million over seven weeks.

Market sentiment for Ethereum-focused products is primarily due to "greater clarity" regarding the upcoming merge. It is scheduled for September 19, according to CoinShares Head of Research James Butterfill on Monday. A shift from proof-of-work to proof-of-stake in Ethereum's algorithm is credited with the change in investor sentiment.

Finally, Ethereum 2.0 Beacon Chain will be added to the mainnet in the merge, concluding an important transition from PoW to PoS. When Ethereum switches to a PoS consensus mechanism, it should become more secure and use less energy, which will, of course, help make it less harmful to the environment.

The Goerli and Prater testnet merge is also scheduled for this week, and it will be the final dress rehearsal before the mainnet merge takes place in less than six weeks.

## Traders are getting ready for the next round of trading

[Cryptocurrency analysts Glassnode have predicted](https://cointelegraph.com/news/institutions-flocking-to-ethereum-for-7-straight-weeks-as-merge-nears-report) that the anticipated Ethereum merge news will lead to "buy the rumor and sell the news" among traders. For Ethereum, "derivatives traders are placing obvious bets on the upcoming merge."

An analytics firm's newsletter, Betting on the Merge, ETH options and futures are now in "backwardation". That is a situation in which the current price of an asset is higher than the prices trading in the futures market.

When it comes to the Ethereum merge news, futures and options markets are in a backwardation after September, which suggests that traders are anticipating an event like this and have positioned themselves accordingly, the newsletter said. Data from Ethereum options shows professional traders are ready to go long on ETH's Merge, which is relevant.

However, [the merge's impact on Ether's price](/news/article/ethereum-merge) is yet to be determined.

In a recent interview, Ethereum founder Vitalik Buterin said the "narrative" is likely to remain positive after the merge, which is "an aspect that hasn't yet been priced in."

He added, "I expect morale to soar once the merger is completed. In other words, I believe the merger will not be priced in, and by that, I mean not just in terms of market value, but also in terms of psychological impact and narrative arc. After the fact, I don't think it's going to be factored into the narrative at all."

CoinGecko reports the price of Ethereum is $1,776 at the time of writing, up 8.6% in the last seven days.



Ethereum Merge News Just Around the Corner

The co-founder of Ethereum, Vitalik Buterin, claims that [layer 2 rollups will soon cause transaction prices to drop](https://cointelegraph.com/news/vitalik-crypto-payments-will-make-sense-as-tx-costs-fall-to-mere-cents-kbw-2022) to fractions of a cent, making cryptocurrency payments "make sense" once more.

The Cointelegraph team reported on Buterin at Korea Blockchain Week (KBW) saying that blockchain data compression is the last obstacle to scaling down transactions to fractions of a cent.

KBW, Asia's largest blockchain event, started yesterday and runs until August 14 at the Grand Intercontinental, Seoul.
 
He said an example of the "solid work happening" is Optimism's layer 2 scaling solution for Ethereum. It has demonstrated results lowering the amount and cost of data in blockchain transactions by introducing zero-byte compression.

Buterin added that, although serving mainly as a speculative store of value, the primary use of [Bitcoin (BTC)](/coins) described in its white paper from 2008 was to offer a "peer-to-peer electronic cash system" that was less expensive than conventional payment methods.

He said that although this remained true until 2013, it was no longer the case by 2018 as usage grew and blockchain transactions became prohibitively costly.

According to the co-founder of Ethereum, scaling solutions, like the Lightning network in the case of BTC, will eventually lower the prices to fractions of a cent, allowing BTC and other currencies to serve this use case once again.

## Use Cases for Cryptocurrency Transactions

Buterin gave examples of where inexpensive crypto transactions will be beneficial.

He pointed to "lower income nations or regions where the present financial system is not very successful", saying it would provide residents with access to crucial payment structures via the internet, which is already being used despite the expense of international remittances.

In the context of Ethereum, he noted that inexpensive crypto transactions would aid in developing Web3 account management systems, non-financial applications such as domain name system (DNS) servers, and humanity proof of attendance protocols.



Crypto Payments to "Make Sense" with Layer 2 Growth 

The [Ethereum Merge](https://ethereum.org/en/upgrades/merge/) is a highly anticipated event of 2022 in the crypto community. The event will mark the completion of the second phase of the Ethereum 2.0 upgrade. The Ethereum Mainnet will merge with the Beacon Chain, transitioning it from a Proof-of-work to a Proof-of-stake blockchain.

## The Beacon Chain

Launched on December 1st, 2020, the Beacon Chain is a proof of stake blockchain running parallel to the Ethereum blockchain. The chain is a consensus layer that handles a network of stakers. Since its creation, the Beacon chain has been put under various tests to test its reliability and capabilities.

The Ethereum Merge will see the Beacon Chain’s proof of stake consensus replace Ethereum’s proof of stake consensus. The Beacon Chain will become the prime blockchain on the Ethereum network.

## Impact of the Ethereum Merge

There are many reasons to be excited about the Ethereum Merge. The event is not just for crypto holders as its success will see Ethereum reduce its carbon footprint significantly.

The crypto space has for the longest time been under great criticism due to its negative impact on the environment, especially blockchains that use proof of work consensus mechanism.

Some of the benefits of the Ethereum Merge include Ethereum’s transition to proof of stake, better network security, and a possible increased user base.

## Benefits of the Merge

•	Transition to Proof of Stake consensus mechanism
Ethereum like Bitcoin has been using a Proof of Work consensus mechanism to verify transactions, add new blocks, and network security. The problem with proof of work is its high energy consumption rate. Its high energy consumption rate makes it harmful to the environment.

With proof of stake, Ethereum replaces miners with validators. The network no longer requires high energy-consuming hardware for security.
According to research done in 2021 by researchers at the Ethereum Foundation, Ethereum’s transition to proof of stake consensus can cut its energy use by at least 99.95%.

•	Better network security
The proof of stake consensus mechanism eliminates the need for expensive network security hardware. The consensus mechanism introduces staking, where any crypto holder can participate in securing a blockchain network.

Proof of stake makes it easy for anyone to help secure the Ethereum network. The more people participate in security the more robust the chain becomes. More people securing a network increase its decentralization. Proof-of-stake, therefore, also reduces centralization risks.

A plus for Proof of Stake is that it can also enable a network to become more censorship-resistant. Mining hardware tends to be easy to detect and shut down. However, the same cannot be said about computers running validator nodes.

•	Increased user base
There is a high possibility of more people and developers flocking to the Ethereum network after the Merge. High gas fees and slow transaction speeds have kept many people and developers away from the network. However, after the merge, the inefficiencies can become a thing of the past.

## Ethereum Merge Risks

•	Technical challenges
Critics of Ethereum believe the network is taking a huge gamble switching from Proof of Work to Proof of Stake while in operation. There could be many unforeseen bugs with the new blockchain, which puts at risk $183 billion worth of Ether in circulation. 

Solana is a good example of a Proof-of-Stake blockchain that has suffered several complete outages this year (2022).

Proof of stake is also seen as a fairly new consensus mechanism when compared to proof of work. Proof of work has been around for a while. It has been tried and tested and proven to be highly secure.

## Will the Merge affect Ether Prices?

Different investors predict a different outcome for [Ether prices](/news/article/ethereum-news-now) after the Ethereum Merge. Some investors predict a bull run for the digital coins while others predict a bear run.

Considering the current state of the crypto market and that Ether is down by 60% since the beginning of the year (2022), some investors believe once the merge unlocks locked Ether many holders will sell their coins, resulting in their price depreciation.

However, some investors believe Ether prices might go up after the Merge due to Ethereum’s transition to proof of stake. The proof of stake consensus mechanism will enable Ethereum to attract more users and developers.

## When will the Merge happen?

The Ethereum Merge is expected to happen in September this year (2022). Tim Beiko, an Ethereum developer and prominent figure in the Ethereum Foundation, put Sept 19th as the tentative date. The Merge timeline is, however, not final.

The Ethereum Merge date announcement saw Ether prices go up considerably to $1,600, which is a good sign for those who believe the Merge will positively affect Ether prices.

## Bottom line

The Ethereum Merge is a big deal in the crypto space. If it's a success then there are plenty of benefits to look forward to from the Ethereum network and a few risks worth considering.

Considering the Ethereum Merge is happening when the crypto industry is experiencing a downturn, there is a lot of uncertainty about how the market may react. Some investors predict a positive outcome while some are not so sure. Do your research.






The Ethereum Merge: What You Should Know

The Raiden Network is Ethereum’s solution to its scaling problem. It is similar to Bitcoin’s Lightning Network, allowing users to initiate fast and low-cost transactions. It works with any ERC20 token.

While built on the Ethereum blockchain, Raiden differs from Ethereum as it does not require global consensus to transfer tokens between participants. Instead, it powers token transfers using hash-locks and digital signatures.

## Benefits of using the Raiden network

Several benefits come with using the [Raiden network](https://raiden.network/101.html). Some of them include;

•	Low transaction costs: transaction costs on the Raiden network are pretty low compared to the Ethereum blockchain. Users can cheaply transfer small quantities of ERC20-based tokens over the network. Payments can be divided into smaller portions over a period for the same fee.
•	Instantaneous transfers: users can send, receive, and confirm transfers instantaneously on the Raiden network. Transfers are as fast as sending text messages.
•	Increased privacy: Users also benefit from better privacy when sending coins over the Raiden network than over the Ethereum blockchain.

## The Raiden Network Token (RDN)

The Raiden Network Token (RDN) is the native currency of the Raiden network. Its main use case is to pay for services within the Raiden network. The token can be used for micropayments and API access.

RDN tokens have a max supply of 100,000,000. According to Coinmarketcap, they currently have a circulating supply of 66,793,931. 
Compared to other cryptocurrencies, RDN coins have had a steady price increase over the years, ever since they first appeared. The digital coins were first tradable on 7th Nov 2017. 

RDN coins are currently trading at $0.06658, with a live market cap of $4,448,620. They are ranked 973rd largest cryptocurrencies in the world.

## Raiden Network Token (RDN) price predictions

Several crypto prediction platforms, including WalletInvestor and Digitalcoinprice predict RDN coins will experience a few bull runs in the future, but it won't be enough to see them trade above $1. The digital coins will still be trading under $1 by 2024.

While they may not be a quick money maker, many investors agree RDN coins are good for long-term investment. At their price, RDN coins also offer a good entry point into the crypto market for many beginner crypto investors. 

## Where to buy RDN coins

RDN coins are listed in several crypto exchanges, including Gate.io, CoinDCX, Bancor Network, and Tokenomy.
Unlike other cryptocurrencies, RDN coins cannot be purchased directly with fiat money. The crypto coins can only be bought with other crypto coins. 

You’ll first have to buy a cryptocurrency like Bitcoin or [ETH](/coins/eth) from a fiat-to-crypto exchange, then go to any exchange that lists RDN coins and use your crypto to buy the coins.

## Where to store RDN coins

As ERC20 tokens, RDN coins can be stored in any ERC20 compatible wallet, including MetaMask and MyEtherwallet. The tokens can also be stored in hardware wallets that support Ethereum blockchain like Trezor and Ledger.

Bottom line

Is Raiden Network a good investment? The network has several benefits that make it better than the Ethereum blockchain. Its native token, while not as expensive as other cryptocurrencies, stands out with its use cases in the network. Many investors also see the crypto coin as good for long-term investment.

However, as is the case with any kind of investment, research is vital to ensure you make the right investment decision. Note that this is not financial advice but the opinion of the author.


Is Raiden Network a Good Investment?

For the CEO of Tesla, Elon Musk, base layer transactions of the Dogecoin (DOGE) chain are far more superior to Bitcoin and Ethereum’s.

Recently he commented on his support for Dogecoin, saying the token actually has “a much higher transaction volume capability than Bitcoin, and the cost of doing a transaction, the Dogecoin fee, is very low". 

"Right now, if you wanted to do a Bitcoin transaction, the price of doing that transaction is very high. So, you could not use it effectively for most things," he said.

In his latest pubic speech at the Qatar Economic Forum, Musk reiterated his support for DOGE although the meme-based cryptocurrency plunged from an all-time high of $0.76 in 2021 to a price of $0.068 at the time of writing.

Musk is currently facing a[ $258 billion lawsuit over allegations](https://news.monitalks.io/news/article/elon-musk-dogecoin) his companies SpaceX and Tesla are part of a racketeering scheme to back Dogecoin. He explained his love for the currency by saying he met many people who were not rich but who encouraged him to buy the token. “I am responding to those people,” he said.

He also clarified that while Bitcoin and Ethereum “are pursuing a multilayer transaction system”, their base layer transaction rate is slow and transaction cost is high. 

“There is merit to Doge maximizing base layer transaction rate and minimizing transaction cost with exchanges acting as the de facto secondary layer,” [he elaborated](https://twitter.com/elonmusk/status/1413396249546563586).

## Dogecoin more scalable than Bitcoin according to Mr Musk

When talking about the differing monetary policies between Bitcoin and Dogecoin, Musk said that low issuance rate could result in hoarding and discourage spending. 

Bitcoin cuts the issuance rate in half roughly every four years, while Dogecoin has an unchangeable issuance rate.

“It won’t need to reach visa speed, as regulated exchanges will act as de facto second layer. But the perfect should not be the enemy of the good – it is still good to increase base layer transaction speed & lower base layer transaction cost,” Musk concluded.

The thing is straightforward, after all -  Dogecoin is more scalable because of its layer-one protocol that doesn’t need one more network. The term layer-one is used to define the primary blockchain architecture. Layer-2, on the other hand, is a network that appears at the top of the underlying blockchain.

Even though Bitcoin advocates have been slamming Musk's tweets, saying he's making a groundless admonishment of the widely-adopted cryptocurrencies, the cost and speed of the Bitcoin blockchains have actually been problematic in the past. However, recent upgrades have improved both.


Elon Musk's view on base layer functionality

The Bitcoin price rose by 7 percent on July 20, while Ether news now confirms its $1,500 level. The cryptocurrency market was bullish as the new day began, with Bitcoin (BTC) breaking the price zone of $23,000 while Ether (ETH) was successful in maintaining the price level of $1,500.

## Ethereum's Price Stabilization

The leading cryptocurrency, Bitcoin, increased in value by 7.6 percent, while Ethereum saw its value increase by 4 percent over the past day. According to data provided by CoinMarketCap, the prices of one bitcoin (BTC) and one ether (ETH) as of 12:12 p.m. Eastern Time were respectively $23,465 and $1,563.

The market capitalization of BTC controls increased to 42.98 percent, up from 41.31%, while the market capitalization of Ether decreased to 18.09 percent, down from 18.2 percent.

A survey conducted by CoinMarketCap projects that the price of one Ether will reach $2,765.93 by the end of July, while another survey projects that the price of the most popular cryptocurrency, BTC, will reach $33,267.03 by the same time period. In total, there were approximately 34,247 and 12,313 people who cast their votes, respectively.

On the other hand, according to the data compiled by PricePredictions, Bitcoin will be worth more than $35,213.01 in 2022, while Ether will be worth more than $2,345.58. The prices of the two tokens have significantly increased as a result of this development.

In April, Antoni Trenchev, the Chief Executive Officer of the cryptocurrency lending company Nexo, made a bullish prediction by stating that Bitcoin could reach $100,000 within the next year.

Cardano (ADA), Cosmos (ATOM), Flow (FLOW), [VeChain (VET)](/news/article/vechain-news), and Helium (HNT) were the top five cryptocurrencies by daily gain, increasing by 10.57 percent, 10 percent, 11.7 percent, and 10 percent, respectively.

Helium (HNT) was the top cryptocurrency by daily gain. As of 12:33 a.m. Eastern Time, the prices of these tokens were as follows: $0.5251, $10.28, $2.06, $0.0271, and $10.22.

As the prices of BTC and Ethereum continue to rise, more and more people are taking notice. Experts are making bullish predictions about the future of both currencies, with some saying that they could reach new heights shortly. Keep an eye on the Ethereum news now to stay up-to-date on all the latest developments in this exciting market! 

For more developments on the crypto news go to Latest Moni.


Ethereum news now confirms $1,500 price level

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